Smarkly Limited uses the income statement approach to account for bad debts and provision for doubtful debts. The following information is available:

1. Past experience suggests that 1 percent of net credit sales will become uncollectible.

2. Credit sales for the year ended 30 June 2016, $3 200 000.

3. Cash sales for the year ended 30 June 201 6, $700 000.

4. Bad debts written off during the year ended 30 June 2016, $17 000.

5. Present balance of provision for doubtful debts account, $21 000.

Prepare the necessary journal entry or entries to account for bad debts for the year ended 30 June 2016. Show all workings.